South African thermal coal prices have gained strength over the last two days, especially as Asian buyers – particularly Indians amongst others – have been exhibiting healthy growth in demand for South African 4,800-5,500 kcal/kg NAR coal grades.
In recent weeks, the South African export market has witnessed a gradual recovery because of comparatively higher price realizations relative to similar calorific value coal grades exported from alternate originating countries, especially Indonesia.
As a matter of fact, South African thermal coal has been performing better in comparison with Indonesian materials of similar heating value.
Nevertheless, falling financial 6,000 kcal/kg NAR prices has been exerting increasing pressure on the commonly exported grades, viz. 5,500 kcal and 4,800 kcal NAR grades.
Meanwhile, the 4,800 NAR supply in the Indian market has been tight throughout the past couple of weeks.
South African discounts
India-delivered prices for South African 5,500 kcal/kg NAR coal and 4,800 NAR coal grades are currently pegged at $6-$8/mt and $12-14/mt to the 6,000 NAR price.
PRICE ASSESSMENTS
RB1 (6,000 kcal/kg NAR) coal is assessed at around USD 62.55/MT FOB Richards Bay.
RB2 (5,500 kcal/kg NAR) coal is assessed in the range of USD 50.92-51.84/MT FOB Richards Bay.
RB3 (4,800 kcal/kg NAR) coal is assessed in the range of USD 39.64-41.24/MT FOB Richards Bay.
For Indian buyers, the above offers amount to USD 75.55, 64.38 and 53.44/MT respectively, after charging an average freight rate of USD 13/MT for Panamax vessel class.
Leave a Reply